This week (4.8-12), domestic adipic acid bottomed out and rebounded. According to the Commodity Market Analysis System of Shengyishe, as of April 12th, the weekly increase in succinic acid was 1.97%. The market trading center is increasing by around 100-200 yuan/ton. At present, the market quotation range for adipic acid is between 9500-9700 yuan/ton. The main reason is the combination of favorable cost and reduced supply.
Cost side: Overall favorable raw material costs
Since April, crude oil has continued to fluctuate at high levels, bringing certain benefits to the domestic petrochemical market. The domestic price of pure benzene has increased significantly. According to the Commodity Market Analysis System of Business Society, pure benzene has increased by nearly 3% since April. The main refinery has significantly increased its quotation. Part of the downstream ethylbenzene and caprolactam units in the Shandong market have started construction, and the demand for pure benzene has significantly increased. Although the price of pure benzene has slightly fallen this week, the driving force on the cost side is still present; As of the weekend, the spot trading range in East China is between 8650-8850 yuan/ton. From a cost perspective, the rebound in the upstream raw material market has boosted adipic acid.
Supply side: Tightening of parking supply for enterprise facilities
From the perspective of market supply: At the beginning of the month, major domestic manufacturers of adipic acid generally raised their listing prices, with an increase of 300 yuan/ton. The manufacturer has a strong willingness to raise prices, mainly due to the low operating rate of the equipment at present. And with the continuous release of maintenance news in the later stage, the expected decrease in supply has led to a sustained strong operation of adipic acid. Specifically, in terms of equipment, Tangshan Zhonghao and Hualu units have entered the maintenance period this week, and Chongqing Huafeng also has maintenance plans in mid month. The decrease in supply has made manufacturers more effective in boosting the market. The improvement of supply side is an important reason for the recovery of adipic acid prices. But the demand side has not changed much, and the upward trend has been suppressed.
Demand side: Difficulty in forming a strong boost on the demand side
The downstream of adipic acid is relatively sluggish. Terminal procurement maintains essential needs. Taking PA66 as an example, the price remained unchanged this week. Currently, the price has reached a high level, and downstream consumers generally resist high prices. The demand in the end market is average, and more purchases are made on demand. The supply and demand of spot goods in the market remain stable. According to the Commodity Market Analysis System of Shengyishe, the price of PA66 this week was 0. During the weekend, the market price of PA66 in Zhejiang region is around 23000 yuan/ton.
Future prospects
Regarding the future market, analysts from Shengyishe Adipic Acid believe that the current cost side may continue to be favorable. On the one hand, crude oil continues to be strong, and on the other hand, pure benzene may still have upward space after adjustment. Factories show a clear willingness to support the market, and the supply side will still maintain a tight pattern, which will continue to support the maintenance of a strong pattern in Adipic Acid prices. Considering the constraints on the demand side, the increase in adipic acid will be limited.
| http://www.sulfamic-acid.com |